This bulletin describes the activities associated with the process of retiring the L 2025 Fund and implementing the new L 2075 Fund, and how these changes impact agencies, services, and payroll offices. It supersedes TSP Bulletin 20-5, Retirement of the L 2020 Fund and the Launch of New L Funds, dated July 1, 2020, and TSP Bulletin 24-3, Launch of the New L 2070 Fund and Default DOB Changes, dated July 26, 2024.
Retirement of the L 2025 Fund
On June 27, 2025, the L 2025 Fund attained an investment mix identical to the L Income Fund and was retired. As a result, after all the transactions for June 27, 2025, were processed, all shares of the L 2025 Fund were “sold” and shares of the L Income Fund were “purchased.” The number of shares of the L Income Fund that the participant received depended on the June 27, 2025 share price of the L 2025 Fund and the L Income Fund. Participants with investment elections to the L 2025 Fund had that election automatically changed to the L Income Fund. Participants who were invested (or had investment elections) in the L 2025 Fund as of May 8, 2025, were emailed/mailed a communication describing the change and the investment transactions will be reflected on their quarterly and annual statements.
Since the L 2025 Fund has been retired, no new investment elections, fund reallocations, or fund transfers to that fund will be accepted.
Establishment of the new L 2075 Fund
As of June 30, 2025, participants will have the option to invest in the following L Funds:
| Default Fund | For those born in years: | Expected TSP drawdown in: |
|---|---|---|
| L Income | 1964 or earlier | Already withdrawing, or will start withdrawing before 2028 |
| L 2030 | 1965 – 1969 | 2028 – 2032 |
| L 2035 | 1970 – 1974 | 2033 – 2037 |
| L 2040 | 1975 – 1979 | 2038 – 2042 |
| L 2045 | 1980 – 1984 | 2043 – 2047 |
| L 2050 | 1985 – 1989 | 2048 – 2052 |
| L 2055 | 1990 – 1994 | 2053 – 2057 |
| L 2060 | 1995 – 1999 | 2058 – 2062 |
| L 2065 | 2000 – 2004 | 2063 – 2067 |
| L 2070 | 2005 – 2009 | 2068 – 2072 |
| L 2075 (New) | 2010 and later | 2073 and later |
The new L 2075 Fund has been opened, effective June 30, 2025, at the initial share price of $10. Participants were able to begin making fund reallocations and fund transfers into the new L 2075 Fund at noon eastern time on June 27, 2025. These transactions became effective on June 30, 2025. Investment elections into the new L 2075 Fund became available beginning June 30, 2025, effective for contributions made on or after July 1, 2025.
Breakage and negative adjustment calculations involving the L 2025 Fund
In order to calculate breakage and the value of negative adjustments when the participant had money in the L 2025 Fund on the “as of” date of the transaction, the TSP will use a constructed share price for the L 2025 Fund. This approach is similar to the one that we use for breakage and negative adjustment calculations for “as of” dates previously.
The constructed share price of the L 2025 Fund is as follows:
Otherwise, there is no change in the methodology used to calculate either breakage or negative adjustments.
Impact on the agencies, services, and payroll offices
Payroll offices should not experience any major impact as a result of these changes. Aside from being able to explain that the L 2025 Fund was retired and that the new L 2075 Fund was introduced, there will only be minor changes to the format of one ad hoc report the TSP provides to the payroll offices through the Agency Portal.
We added a column for the new L 2075 Fund to the following ad hoc report:
- TSP 5013: Benefits Extract Report
This report is a benefit extract that provides active participants’ total balances by fund, source, and plan as of an effective date.
No other reports are affected by these L Fund changes. Once the L 2075 Fund is in production, any report that references this fund will automatically pull in the L 2075 Fund if the participant has it as part of their investments.
EDTS Data Record Formats
The routine reports available via EDTS are not affected by these changes.
Additional information about the L Funds can be found under the Fund Options section of tsp.gov.
